Memory Prices Indefinitely High: SK Hynix Says Shortage Continues Through 2030 We haven't been complaining about RAM prices quite as much on the podcast
Sure, as long as you don’t account for the AI bubble ever bursting. After that, memory will be cheap. We’ll be living in an economic hellscape, but the memory will be cheap.
The price is only high because of the artificial demand from all the data centers. Manufacturers are increasing production capacity to provide more supply. Once the bubble bursts, that demand will drop, but the production capacity will still be there. Supply and demand. Price will go down.
First new fabs are being opened this or next year last I heard. AI boom started in 2022 and fab construction and setup time is said to be 4 years (or more if there are issues).
Of course the question is, will they be making more DDR or more HBM…
Sure, as long as you don’t account for the AI bubble ever bursting. After that, memory will be cheap. We’ll be living in an economic hellscape, but the memory will be cheap.
why would it be cheap, if people would buy it at 4x the normal price?
The price is only high because of the artificial demand from all the data centers. Manufacturers are increasing production capacity to provide more supply. Once the bubble bursts, that demand will drop, but the production capacity will still be there. Supply and demand. Price will go down.
I thought of the problem is they aren’t ramping up production because they think AI is a bubble
First new fabs are being opened this or next year last I heard. AI boom started in 2022 and fab construction and setup time is said to be 4 years (or more if there are issues).
Of course the question is, will they be making more DDR or more HBM…
No, they are definitely ramping up production, just not nearly fast enough. Chip factories take longer to build than data centers.
That’s a pretty naive assumption to make.
I made four different assumptions which one did you think was naive?
That prices will go back down.
It’s supply and demand. Why wouldn’t they?